10 Easy Steps to Outsourcing Your HR Needs


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10 Easy Steps to Outsourcing Your HR Needs

  1. 1. 10 Easy Steps to Outsourcing Your Human Resources Needs with Manager, HR Partner on Demand Michelle Ganuelas Thursday, October 6 th , 2011 from 12 pm to 12:30 pm EDT For audio, you can use listen through your computer OR dial in to the teleconference Toll-Free: 1-877-669-3239 Event Number: 665 467 719 WebEx Support Line: 1-866-863-3910
  2. 2. Jay Rosales Senior Marketing Coordinator Drake International Email: jrosales@na.drakeintl.com Phone: 416-216-1070 (direct) Host: Jay Rosales
  3. 3. Michelle Ganuelas HR Consultant Drake International Email: mganuelas@na.drakeintl.com Phone: 416-216-1097 (direct) Presenter: Michelle Ganuelas
  4. 4. <ul><li>Why Outsourcing is Good for Business </li></ul><ul><li>How to Determine if it will Work for Your Organization </li></ul><ul><li>The 10 Steps You Need to Know to Get Started </li></ul>Key Take-Aways
  5. 5. Agenda <ul><li>What is HR Outsourcing? </li></ul><ul><li>The History of Outsourcing </li></ul><ul><li>Research & Results </li></ul><ul><li>Why Do Companies Outsource? </li></ul><ul><li>10 Steps to Effective HR Outsourcing </li></ul><ul><li>A Special Offer from Drake International </li></ul>
  6. 6. HR Outsourcing What is HR Outsourcing? What does it mean for your organization?
  7. 7. HR outsourcing is not a new concept. History
  8. 8. Research Based on survey data, cost reduction is the top goal driving Human Resource Outsourcing. (Towers Watson) The average operating expense for HR functions for each full-time HR employee is $284,982. This figure doesn’t include training costs or payroll. (Watson Wyatt Worldwide) <ul><ul><li>50% of polled companies said that improving HR service quality was a top goal of their HRO efforts. </li></ul></ul><ul><ul><li>(Towers Watson) </li></ul></ul>
  9. 9. Why Outsource? <ul><li>Three Major benefits: </li></ul><ul><li>Focus on the core business </li></ul><ul><li>Improve the bottom line </li></ul><ul><li>Take advantage of specialized </li></ul><ul><li>knowledge </li></ul><ul><li>Leverage the expertise of a team </li></ul><ul><ul><li>“ Why pay a full-time salary for a part-time job?” </li></ul></ul><ul><ul><li>Bill Pollock, Founder & Chairman of Drake International </li></ul></ul>
  10. 10. 10 Steps to Outsourcing HR Step 1: Map Out Your “As-Is” Step 6: Go to Market Step 2: HR Health Check Step 7: Choose Your SME Step 3: Cost It Out! Step 8: Purchase & Implement Step 4: Build Your Business Case Step 9: Change Management Step 5: Educate Yourself Step 10: Staying On Track
  11. 11. 10 Steps to Outsourcing HR Step 1: Map process throughout the entire employee lifecycle
  12. 12. 10 Steps to Outsourcing HR Step 2: Complete an HR “Health Check” Identify areas within your human resources department that are inefficient and too expensive.
  13. 13. 10 Steps to Outsourcing HR <ul><li>Step 3: Cost These Areas Out in Actual $ </li></ul><ul><li>Add the Following Factors: </li></ul><ul><ul><li>Cost of HR FT wage </li></ul></ul><ul><ul><li>Cost of HR Inefficiencies: </li></ul></ul><ul><ul><ul><li>Cost of mistakes & waste </li></ul></ul></ul><ul><ul><ul><li>Cost of time for each HR process </li></ul></ul></ul><ul><ul><ul><li>Cost of low productivity </li></ul></ul></ul><ul><ul><ul><li>Cost of staff turnover </li></ul></ul></ul><ul><ul><li>Project a 5% improvement (be conservative!) </li></ul></ul><ul><li>Compare this to the cost of outsourcing HR </li></ul>
  14. 14. 10 Steps to Outsourcing HR Step 4: Build Your Business Case
  15. 15. 10 Steps to Outsourcing HR <ul><li>Step 5: Educate Yourself </li></ul><ul><ul><li>Attend webinars </li></ul></ul><ul><ul><li>Attend seminars </li></ul></ul><ul><ul><li>Research (online/offline) </li></ul></ul><ul><ul><li>Talk to your network </li></ul></ul><ul><ul><li>Find and Speak to Subject Matter Experts </li></ul></ul>
  16. 16. 10 Steps to Outsourcing HR Step 6: Go To Market
  17. 17. 10 Steps to Outsourcing HR <ul><li>Step 7: Find the Right Subject Matter Expert </li></ul><ul><li>Evaluate using the following criteria: </li></ul><ul><ul><li>Experience with HR Information Systems </li></ul></ul><ul><ul><li>Experience in their specialized HR function </li></ul></ul><ul><ul><li>or industry </li></ul></ul><ul><ul><li>Analytical competence (ability to map </li></ul></ul><ul><ul><li>systems and processes, identify gaps and </li></ul></ul><ul><ul><li>suggest solutions) </li></ul></ul><ul><ul><li>Number of successful implementations </li></ul></ul><ul><ul><li>Scope of successful implementations </li></ul></ul><ul><ul><li>Client testimonials </li></ul></ul>
  18. 18. 10 Steps to Outsourcing HR <ul><li>Step 8: Purchase & Implement </li></ul><ul><li>Together with your provider: </li></ul><ul><li>Create project plan including </li></ul><ul><ul><li>Timelines (what-by-when) </li></ul></ul><ul><ul><li>Resource allocation (by-whom) </li></ul></ul><ul><ul><li>Communication / feedback strategy </li></ul></ul><ul><li>Regular project review meetings, corrective actions </li></ul>
  19. 19. 10 Steps to Outsourcing HR <ul><li>Step 9: Change Management </li></ul><ul><li>Clear communication to all stakeholders </li></ul><ul><li>Dealing with stakeholder concerns </li></ul><ul><li>Senior leadership to champion the change and become early adopters </li></ul><ul><li>Incentive, reward and penalty system in place to promote compliance </li></ul>
  20. 20. 10 Steps to Outsourcing HR <ul><li>Step 10: The Continuing Relationship </li></ul><ul><li>Continuous measurement </li></ul><ul><li>Performance management of vendor </li></ul><ul><li>Ensure improvements are achieved </li></ul>
  21. 21. <ul><li>Many organizations utilize a Help Line to seek HR advice though phone or e-mail </li></ul><ul><li>Help Line helps you avoid the costs of brining on a consultant full time </li></ul>HR Help Line
  22. 22. Haven’t listened until now? <ul><li>The Highlights: </li></ul><ul><li>HR Outsourcing is helping firms – large and small – to save money and drive results </li></ul><ul><li>HR outsourcing provides an opportunity for HR Professionals to contribute on a strategic level </li></ul><ul><li>This isn’t for everyone, but every firm can probably benefit from some form of strategic HR outsourcing </li></ul><ul><li>HR Help Line give organizations advice on HR related questions and can save the company money! </li></ul>
  23. 23. Special Offer <ul><li>Advice on HR related questions that you may have </li></ul><ul><li>We help only where you need it </li></ul>Michelle Ganuelas 416-216-1097 [email_address] ONE MONTH FREE access to Drake’s HR Help Line
  24. 24. Q & A with Michelle Ganuelas Manager, HR Partner on Demand 10 Easy Steps to Outsourcing Your HR Needs
  25. 25. Michelle Ganuelas Manager – HR Partner on Demand Drake International [email_address] 416-216-1097 (direct) Jay Rosales Senior Marketing Coordinator Drake International [email_address] 416-216-1070 (direct) Contact Us
  26. 26. October 20 th , 2011, 12 pm EST to 12:30 pm EST We Can’t Change the World, But We Can Change Our World – Overcoming the Constant Friction Between Hard and Soft HR Approaches >> Presented by Karen Meredith, Drake P3 Register at http://drake-webinars.com